Greetings. Newb here and learning as I go.
I have a question about who/how bid/ask prices are set prior to the market opening.
I had a small position in UEPS (nasdaq). It closed yesterday around 16.50 and I had a trailing stop on it for $15. This morning, I was stopped out right as the market opened. Apparently the Nasdaq uses the bid price to activate triggers for stop orders, and this morning the first bid price of the day was $14.60 (ish).
So I'd appreciate direction to a website or someone's explanation for how bid/ask prices are set pre-opening. Obviously this stock was going to gap down in price today, but it has not traded down at that initial bid price... it's currently trading around $16 with the bid/ask reflecting the current price
appreciate any help!
Hiya. Just bumping this because I know someone out there can explain this to me Have been reading your posts and clearly (most of) you are really experienced.
Just trying to understand how the pre-market bid/ask can be close to $2.00 (12%) below the stocks closing price the day before... and then not have the stock trade anywhere near that value for the whole day.
Thanks again if anyone can respond.